Bankruptcy Suit Filed Against Company Boss

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The Managing Director and Chief Executive Officer of BGL Securities, Mr. Albert Okumagba, may not be allowed to hold the position of a director in any public or private company in Nigeria if a Federal High Court sitting in Lagos issues an order adjudging him as bankrupt as Finbank is urging it to do.

In a suit number FGC/BK/10/10 filed before the court by Mr. Olisa Agbakoba (SAN), it was alleged that BGL Securities requested that Finbank Plc grants it a loan of N4,898,174,922.20 to enable it raise funds by way of private placement of its shares to be allotted to 49 investors under the BGL Placement Scheme.

Part of the conditions for granting the loan was that the company would contribute N2,148,775,989.35 representing 30 per cent equity contribution, facility fee and management fee of the facility granted. The company was to also provide corporate guarantee in favour of the 49 investors who had agreed to the company’s shares under the scheme.

Pursuant to the granting of the facility, the company made the said contribution and resolution to repay its loan of N4,898,174,992.20 plus accrued interest in the event of default by the 49 investors to repay the loan on the due date being 4 December, 2009.

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The date has since elapsed and the debtor and the company have failed to pay in spite of repeated demands, while Finbank prays the court for an order adjudging Mr. Albert Okumagba bankrupt; directing that all his assets and holdings held personally or through third party and privies be liquidated and the proceeds applied towards offsetting his debt, particularly N6,488,506,789.49 being the outstanding loan facility granted to BGL Securities based on the debtor’s personal guarantee.

The bank also seeks the order of the bank to divest the debtor of all shares, interest and holdings in all public or private companies as well as restraining him from taking appointment as director in any public or private company in Nigeria.

The suit is adjourned till 12 April, 2011.

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